A series of Fe 2 O 3 -CeO 2 composite catalysts were synthesized by coprecipitation and characterized by X-ray diffraction (XRD), BET surface area measurement, Raman spectroscopy, and X-ray photoelectron spectroscopy (XPS). Their catalytic activities in CO oxidation were also tested. The Fe 2 O 3 -CeO 2 composites with an Fe molar percentage below 0.3 form solid solutions with the CeO 2 cubic fluorite structure, in which the doped Fe 3+ initially substitutes Ce 4+ in fluorite cubic CeO 2 , but then mostly locate in the interstitial sites after a critical concentration of doped Fe 3+ . With an Fe molar percentage between 0.3 and 0.95, the Fe 2 O 3 -CeO 2 composites are mixed oxides of the cubic fluorite CeO 2 solid solution and the hematite Fe 2 O 3 . XPS results indicate that CeO 2 is enriched in the surface region of Fe 2 O 3 -CeO 2 composites. The Fe 2 O 3 -CeO 2 composites have much higher catalytic activities in CO oxidation than the individual pure CeO 2 and Fe 2 O 3 , and the Fe 0.1 Ce 0.9 composite shows the best catalytic performance. The structure-activity relation of the Fe 2 O 3 -CeO 2 composites in CO oxidation is discussed in terms of the formation of solid solution and surface oxygen vacancies. Our results demonstrate a proportional relation between the catalytic activity of cubic CeO 2 -like solid solutions and their density of oxygen vacancies, which directly proves the formation of oxygen vacancies as the key step in CO oxidation over oxide catalysts.